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Explain the role of capacity planning

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1. Explain the role of capacity planning in operations management

2. Jonathan owns and operates 5 car window tinting shops in the Rio Grande Valley area. Each tint shop has 4 car stalls. Jonathan only operates 3 stalls at a time, leaving the other stall vacant. Based on his latest revenue reports, he is averaging 2 customers at a time receiving tint while the 3rd stall is empty. Each tint shop is open 12 hours per day. Each car or truck requires 2 hours of work.

a) What is Jonathan's daily design capacity?

b) What is Jonathan's daily effective capacity?

c) What is Jonathan's actual output per day?

d) What is Jonathan's utilization rate?

e) What is Jonathan's effective utilization rate?

Reference no: EM133042740

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